~ R S I T Y OF MORATUWA ENGINEER'S MANAGEMENT OF TIME EXTENSION CLAIMSFOR THE NATIONAL WATER SUPPLY AND DRAINAGE BOARD .- K. L. L. PREMANATH SUPERVISED BY DR. G. W. KODIKARA DEPARTMENT OF CIVIL ENGINEERING -OF MORATUWA, MORATUWA, SRI LANI(A. ENGINEER'S MANAGEMENT OF TIME EXTENSION CLAIMS FOR THE NATIONAL WATER SUPPLY AND DRAINAGE B o r n . . . ~ K. L. L. PREMANATH B.Sc(Eng) Hons. ,D.S.E.(Netherlands),M.I.E.(Sri Lanka) I THE L IBRrKY, / THE FACULTY OF ENGINEERING A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER OF ,ENGINEERING 'I., \ DEPARTMENT OF CIVIL ENGINEERING 5 IN !WPERVISED BY DR. G. W. KODIKARA . . L3060 P E R M A N Rk:FElt l!Jr i, NO1 i b L REMOVED I r., cD)(Sl'Rt$CTIOW d '3TR$lWUB'm (;pQ GBNEEWING DWARTWEMT OF CIV\L ENCINERWL6 UNIVERSITY OF MOMTUWA. University of Moratuwa October 1994 ABSTRACT In the sphere of construction contracts where the two parties Client and Contractor are involved it is characteristic to anticipate the susceptibility of the construction projects to many variation claims which generally cover a vast scope. These claims include Increase of Cost and/or Time Extensions. This research which has been limited to the subject of Time Extension Claims has been done with the objective of enlightening the NWS&DB Engineers with the problems associated in Time Extension Claims. In order to achieve this target a familiarization was found necessary of the Conditions of Contract (ICTAD 1989),, Government Financial Regulations (Ministry of Finance 1992) and delegation of Financial Authority (NWS&DB 1991), which have been studied in relevance. . It was found practically helpful and interesting to analyse a number of case studies from various construction contracts that were relevant to Time Extension Issues in order to give better expression to the subject under scrutiny, thus enabling achievements of the required objectives. P E R M A N 1 5 N I ' R N F E K , L A C E REMOVED FRCM THE LIBRFRY. 1. INTRODUCTION 1.1 Background 1.2 Research Objectives 1.3 Research Methodol.ogy 1.4 Main Ach.ievements FINANCIAL REGULATIONS 2.1 Construction works handled by the NWS&DB 2.2 Government Financial Regulations 2.3 Delegation of Financial Authority of NWS&DB 3. CONDITIONS OF CONTRACT 3.1 ICTAD conditions for the NWS&DB 3.2 Claim clauses of the ICTAD conditions 4. CASE STUDIES __.- 4.1 Description of the case studies 4.2 Claim situation 4.3 Time extensions 4.4 cost over-run due to time extensions Page No. Page No. 5. IMPORTANT ASPECTS 5.1 Best approach to handle claim situation 5.2 Analysis and approvals of time extensions 5.3 Analysis and approvals of claim on cost over run 6 CONCLUSIONS 7. RECOMMENDATONS 40 8 REFERENCES 41 9. Appendix A - Case Study 1 42 Appendix B - Case Study 2 56 Appendix C - Case Study 3 69 Appendix D - Specimen Letters 72 LIST OF ABBREVIATIONS ACCSL Addl. G.M. A.G.M. A.G.M. (C) B&P DGM DGM (C) DGM (F) DGM (P&D) F.R. G.M. ICE ICTAD JEDB NWS&DB P.M. R.E. Association of ConstructionContractors of Sri Lanka Additional General Manager Assistant General Manager Assistant General Manager (Construction) Budget and Progress Deputy General Manager Deputy General Manager (Construction) Deputy General Manager (Finance) Deputy General Manager (Planning and Designs) Federation International Des. Ingenieurs-CONSEILS Financial Regulations General Manager Institution of Civil Engineers Institute for Construction Training and Development Janatha Estate Development Board National Water Supply and Drainage Board Project Manager __-A Resident Engineer